RE: RRR/POW Deal11 Jun 2024 19:39
I see little point in outright buying the Australian project after all they own a big enough proportion of it already.
Plus Bell has never seen it as a priority project because he's been buying other assets around the world. Having lots of assets doesn't impress me because to me it's just indecisiveness by Bell.
Plus the March RNS said:
"From the date of execution of this HoT or the Long Stop Date, whichever shall be sooner, until Completion, each Party will contribute A$20,000 per month towards the costs of RRAL, with any further costs to that date being met by Red Rock"
...
So if tomorrow Red Rock take 100% then RRAL costs double to A$40,000 each month for Red Rock. So that's not good.
Red Rock is a company that operates way beyond it's financial means. So the consequence is share price decimation for shareholders.
It certainly is a poorly run company.